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Higher pricing is expected at Nucor Corp.'s sheet and plate factories

The overall operating rates at the company's steel factories increased from 68% in the second quarter to 83% in the third quarter of this year.

Higher pricing is expected at Nucor Corp.'s sheet and plate factories

Nucor Corporation has announced its results for the third quarter of 2020. The company reported consolidated net earnings of $193.4 million or $0.63 diluted earnings per share for the third quarter of 2020. This is compared to $275.0 million or $0.90 diluted earnings per share for the third quarter of 2019. The consolidated net earnings for the first nine months of 2020 were $322.6 million or $1.06 diluted earnings per share. Nucor had cash and cash equivalents, short-term investments, and restricted cash and cash equivalents of $3.41 billion at the end of the third quarter of this year.

The overall operating rates at the company's steel factories increased from 68% in the second quarter to 83% in the third quarter of this year. However, the operating rates during January-September 2020 decreased to 80% compared to 85% in the first nine months of 2019.

Nucor's consolidated net sales for January-September 2020 were $14.88 billion, a 15% decrease from the reported $17.46 billion for the first nine months of 2019. Total shipments to external customers also decreased by 5% to 19.033 million tons. The average sales price per ton experienced a 10% annual decrease.

The company expects higher earnings in the fourth quarter of 2020 compared to the third quarter, mainly due to higher pricing at its sheet and plate factories. The earnings from the raw materials segment will also be higher in the fourth quarter due to increased margins at the DRI facilities.

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